The water heater industry has for many years attempted to manufacture water heaters that are more energy efficient. Various improvements have been made over the years, including better insulation of the water tank and implementation of microcontrollers to better control the heating elements and utilize a decreased amount of energy to produce hot water. While substantial progress has been made, there is still significant room for improvement.
Also, in the case of electric water heaters, they have a disadvantage relative to gas water heaters with respect to first hour ratings. Thus, there is a need to provide electric water heaters with better first hour ratings.